debt crisis – Mining firm Riot Blockchain records losses during the third quarter of this year. The situation remains delicate for minors for the past three months.
Riot Blockchain: a third quarter in the red
According to its third quarter financial report published on November 7, Riot Blockchain’s total revenue amounted to $46.3 millioncompared to $64.8 million over the same period last year.
This drop in revenue is believed to be due to the drop in the price of Bitcoin, and the decrease in activity of Riot Blockchain, in the face of the increase in energy demand in Texas.
During the third quarter, the Bitcoin mining company recorded a net loss of $36.6 millionfor $0.24 per share, compared to $15.3 million in losses, for $0.16 per share, over the same period last year.
Despite these revenue declines and losses, liquidity reserves of Riot Blockchain, however, remained relatively stable. At the end of the third quarter of this year, the Bitcoin mining company had $255 million in cash and 6,766 BTC, compared to $270.5 million in cash and 6,653 BTC at the end of the previous quarter.
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Bitcoin mining: withdrawals to watch closely
This last quarter of 2022 is proving to be even more complex for miners, with Bitcoin hitting new bottoms due to the FTX crisis. In an October 10 post published on the blog of the on-chain analysis platform CryptoQuantcontributor MAC.D even hinted that mining giants could do “ bankruptcy “.
In particular, he pointed to the fact that there is “already a lot of information” indicating that mining companies listed on the Nasdaq would not be not able to honor their debts.
The bankruptcy of these mining companies would put further downward pressure on Bitcoin, as these companies will then be forced to sell their BTC holdings. Such a scenario creates a vicious circle – bankruptcies, BTC sell-offs, bitcoin price drop, other bankruptcies – if the bulls don’t buy the dips to turn things around in the coming days.
The post emphasizes the need to “keep an eye” on the miner withdrawal chart. If the amount of these withdrawals increased, then the price of Bitcoin would be “likely to fall further”.
Bitcoin trades at $17,987 at the time of writing this article. The total amount of Bitcoin coming out of miners wallets – the bitcoin miner outflow – currently stands at 872.90 BTC, a figure that is 64% below the 7-day moving average of 2,425.57 BTC.
The miners’ nightmare continues. Will the FTX crisis prolong the crypto winter or, on the contrary, mark the end of these bear markets, for the return of spring?
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